impact of recruitment & selection processes on employee performance: a study on telecom industry...

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IMPACT OF RECRUITMENT & SELECTION PROCESSES ON EMPLOYEE PERFORMANCE A study on Telecom Industry of Pakistan

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IMPACT OF RECRUITMENT & SELECTION PROCESSES ON EMPLOYEE PERFORMANCE

A study on Telecom Industry of Pakistan

Contents

2

Introduction1

Gap Analysis2

Literature Review3

4

Research Design

Analysis & Results

Research Model and Hypotheses

5

6

4

Conclusion and Recommendations7

Details of the Group

3

Group:

•Sheheryar Alvi

Supervisor: Mr. Fawad Asif Rana

Introduction to the Study -Research Objectives

4

Analyze previous literature on employee performance. To identify different variables which are strongly related

with employee performance To study, collect and analyze these variables in Pakistani

context. To analyze and interpret collected data using statistical

tools in order to determine critical variables impacting employee performance.

To interpret and conclude the research findings.

Research Questions

Q1: How do meritocracy, recruitment practices, recruitment sources and corporate image affect employee performance in telecommunication industry of Pakistan?

Q2: How do meritocracy, recruitment practices, recruitment sources and corporate image play a positive role in increasing employee performance of telecommunication industry of Pakistan?

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Gap Analysis6

Extensive study of previous literature was done but non was found to be using the theoretical framework used in this research in Pakistani context.

The variables used in this research have never been used in a combined way to study their relationship in the telecom industry of Pakistan.

Literature Review –Meritocracy Equity

7

A meritocracy is a social system in which people’s success in life depends primarily on their talents, abilities, and effort. It incorporates the principles of equal opportunity to ensure that the most capable person is selected for a position on the basis of merit.

Meritocracy is a concept that says, distribution of jobs, rewards both monetary and non-monetary and distribution of responsibilities should be based on skills, knowledge, competence and merit (Scully, 1997:413).

Our Studies show that in Pakistan there is a law or legislation that advocates equal employment opportunity (Ali, Goheer, & Syed, 2000; 2003; 2009)

Literature Review –Recruitment Practices (Jovanovic, 2012) Found that through the recruitment

process you can identify the best candidate among all the candidates.

when an organization does the analysis of their future need they actually make a plan of hiring and firing employees and give rewards to the productive employees to retain them (costello,2012).

Recruitment process has always been the valuable practice which plays an important role in HRM and leads to organizational success (Jovanovic, 2004)

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Literature Review –Recruitment Sources It would be no lie if we say that outsourcing

human resource functions such as recruitment and selection is a new trend and it is affecting the future human resource strategy in a very positive way (Sriwongwanna, 2009).

According to Business wire 2000 the companies who are “at the leading edge of internet recruitment” can achieve lower costs, faster recruiting cycle and higher caliber recruits.

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Literature Review –Corporate Image An author explains that corporate image is always being

in use as a equivalent for conceptions like forwarding message, standard of an organization, perfection of people, cognition, trust, communication and relationship (Grunig, 2011).

Some researchers view the corporate image, as the overall picture of any organization as what public feels about them (wininck & spector, 2011).

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Literature Review – Employee Performance Organizational performance is highly motivated by the

rewarding process of its employees (Bowen, 2000). people who are directly appointed by an organization or

whose job or activities directly impacts and links to the core financial functions of a company” (Ho, 2012).

Performance criteria are standards for employee behavior at work. This criteria contains much more than how an employee does the work. Employees are rated on how well they do their jobs compared with a set of standards determined by the employer.

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Theoretical Framework

H1(-)

H2(+)

H3(+) H4(-)

Meritocracy EquityMeritocracy Equity

Recruitment PracticesRecruitment Practices

Recruitment SourcesRecruitment Sources

Corporate ImageCorporate Image

Employee PerformanceEmployee

Performance

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Research Design13

Unit of AnalysisThis research is based on individual study

Statistical tools used for Hypotheses TestingStatistical software (SPSS 17.0).

Software (s) used Statistical software (SPSS 17.0). MS Excel.

Research Design14

Population & Sample This research is based on telecom industry of

Pakistan. 300 questionnaires were randomly distributed among all telecom companies based in Islamabad.

Data collection instrument & technique Data was collected through a questionnaire.

Research Design - Instrument15

A questionnaire was adapted. 300 questionnaires were taken personally to the main

offices of telecom companies (based in Islamabad) out of which 232 came back, the rest were not returned or were not filled correctly this made them invalid for the research.

Data Collection Technique/Instrument:

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Variables Sources adapted from

Meritocracy Equity (Garcia, 2001)

Recruitment Practices (Alnaqbi, 2011)

Recruitment Sources (Bowen, 2000)

Corporate Image (Fatt, Wei, Yuen, & Suan, 2000)

Employee Performance (Glavas, 2009)

Research Design – Reliability of the Scale17

Variable Cronbach’s Alpha Number of items

Meritocracy Equity 0.801 07

Recruitment Practices 0.655 06

Recruitment Sources 0.678 05

Corporate Image 0.899 13

Employee Performance 0.891 09

Data Analysis and Results18

Demographic Result

Gender

Frequency Percent Valid Percent Cumulative PercentValid 1 128 55.2 55.2 55.2

2 104 44.8 44.8 100.0Total 232 100.0 100.0

Demographics -Age19

 

Frequency  Percent Valid Percent Cumulative PercentValid 1 128 55.2 55.2 55.2

2 104 44.8 44.8 100.0

Total 232 100.0 100.0  

Demographics -Education20

 

 Frequency Percent Valid Percent Cumulative Percent

Valid 2 27 11.6 11.6 11.6

3 154 66.4 66.4 78.0

4 51 22.0 22.0 100.0

Total 232 100.0 100.0

 

Demographics -Position21

 

           Frequency             Percent Valid Percent Cumulative Percent

Valid 1 40 17.2 17.2 17.2

  2 91 39.2 39.2 56.5

  3 85 36.6 36.6 93.1

  4 16 6.9 6.9 100.0

  Total 232 100.0 100.0 

Demographics -Function22

   

  Frequency        Percent         Valid Percent    Cumulative PercentValid 1 45 19.4 19.4 19.4 

2 132 56.9 56.9 76.3 3 51 22.0 22.0 98.3 4 4 1.7 1.7 100.0 Total 232 100.0 100.0    

Demographics -Experience23

 

 Frequency Percent Valid Percent Cumulative Percent

Valid 1 138 59.5 59.5 59.52 66 28.4 28.4 87.93 6 2.6 2.6 90.54 4 1.7 1.7 92.25 18 7.8 7.8 100.0Total 232 100.0 100.0

 

Data Analysis and Results –Descriptive Statistics

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Descriptive Statistics

N Minimum Maximum Mean Std. Deviation Skewness Kurtosis

Statistic Statistic Statistic Statistic Statistic Statistic Std. Error Statistic Std. Error

MeritocracyEquity 232 1.43 4.29 3.1355 .72851 -.306 .160 -.758 .318

RecruitmentProcess 232 2.50 4.33 3.5086 .44589 -.682 .160 -.251 .318

RecruitmentSources 232 1.80 4.60 3.3966 .63953 -.776 .160 .612 .318

CorporateImage 232 1.85 4.85 3.6426 .71792 -.700 .160 .467 .318

EmployeePerformance 232 1.67 4.78 3.5594 .84410 -.744 .160 -.308 .318

Valid N (listwise) 232

Data Analysis and Results –Model Fitness

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ANOVAb

Model Sum of Squares df Mean Square F Sig.1 Regression 113.988 4 28.497 127.841 .000a

Residual 50.601

227 .223

   

Total 164.589 231

     

a. Predictors: (Constant), CorporateImage, MeritocracyEquity, RecruitmentSources, RecruitmentProcess

b. Dependent Variable: EmployeePerformance

Next Slide!

Regression Analysis

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Coefficients

Model

Unstandardized Coefficients

Stan

dardi

zed

Coeff

icient

s

t Sig.

Collinearity

Statistics

B

Std.

Error Beta

Toler

ance VIF1 (Constant) -1.773 .249

 -

7.122

.000

   

MeritocracyEquity .045 .050 .039 .905 .366 .737 1.356

RecruitmentProcess 1.213 .117 .641 10.38

6

.000 .356 2.813

RecruitmentSources .526 .079 .399 6.689 .000 .382 2.621

CorporateImage -.234 .074 -.199 -

3.166

.002 .342 2.923

a. Dependent Variable: Employee Performance

Data Analysis and Results –Model Summary

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Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate Durbin-Watson1 .832a .693 .687 .47213 2.430

a. Predictors: (Constant), CorporateImage, MeritocracyEquity, RecruitmentSources, RecruitmentProcess

b. Dependent Variable: EmployeePerformance

Data Analysis and Results –Correlation

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Data Analysis and Results –Correlation

MeritocracyEquity RecruitmentProcess RecruitmentSources CorporateImageEmployeePerforman

ceMeritocracyEquity Pearson Correlation 1

RecruitmentProcess Pearson Correlation .502** 1

RecruitmentSources Pearson Correlation .382** .700** 1

CorporateImage Pearson Correlation .330** .736** .755** 1

EmployeePerformance

Pearson Correlation .447** .793** .712** .586** 1

**. Correlation is significant at the 0.01 level (2-tailed).

Findings and Discussion30

This research shows that recruitment practices and recruitment sources have a significant positive relationship with employee performance.

While meritocracy equity and corporate image did not have a significant relationship with employee performance.

Recruiter’s/Manager’s focus should be on the sources and the practices they use to hire new employees.

Cont’d…

Previous literature shows that training and development, flexible working hours, rewards and recognition motivates employees, which leads to high performance (recruitment practices).

Social media and other web portal are the most reliable and cost effective ways to attract competent applicants (recruitment sources).

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Implications of the Study32

Managerial Implications: It is managers responsibility to maintain

employee’s performance. This research will provide a new dimension to the

managers, recruitment & selection process. Successful recruitment practices that are

mentioned in this study. E-recruiting and outsourcing the new trend in

business world, this research will help managers to identify and apply the most effective sources of recruiting new employees.

Limitations and Future Direction33

Time constraints. Manager’s busy schedules. Less knowledge of professional statistical soft

wares. Recommendation for future research are

Extensive knowledge of research methodologies and statistical instruments.

A good quality research requires appropriate time.

References

(Garcia, 2001) (Alnaqbi, 2011) (Bowen, 2000) (Fatt, Wei, Yuen, & Suan, 2000) (Glavas, 2009) And many more in PDF and Word document

(attached)

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